Downside risk rises after repeated rejection at key barrier
The pair holds in red on Tuesday after three-day recovery repeatedly failed to clear key Fibo barrier at 106.68 (38.2% of 109.31/105.05).
Rising bearish momentum on daily chart warns of further easing, with extension below 10DMA pivot (106.14) needed to confirm reversal and signal formation of top at 106.69.
Today’s strong close in red (below Monday’s low at 106.24) would also form bearish outside day and add to negative signals, as falling 20DMA (106.96) continues to maintain downside pressure.
Ability to hold above 10DMA would delay fresh bears for prolonged consolidation, but near-term risk is expected to remain shifted to the downside as long as pivotal barriers at 106.68/96 hold.
Res: 106.68; 106.96; 107.18; 107.31
Sup: 106.14; 105.65; 105.49; 105.05